Goldman did not get burned on subprime. They got burned on self-underwriting synthetic contracts and listening to MBAs rather than quants to justify not hedging

Goldman did not get burned on subprime. They got burned on self-underwriting synthetic contracts and listening to MBAs rather than quants to justify not hedging them. If you have not watched "The Big Short" you should watch it. This move by Goldman is based on learning. They will trade against the clients. Except they would hedge it.